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Gold price weaker on routine profit-taking, chart consolidation

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(Kitco News) - Gold prices are moderately lower in early U.S. trading Monday. The yellow metal is pausing and seeing some normal chart consolidation after hitting a 12-month high last week. Silver prices are slightly up. Both metals are still in solidly bullish technical postures to suggest more upside for prices in the near term. April gold was last down $9.50 at $2,002.40 and May silver is up $0.087 at $25.18.

Global stock markets were mixed overnight. U.S. stock indexes are pointed toward mixed openings when the New York day session begins. It’s a calmer start to the trading week, following a three-day holiday weekend for most traders and investors. The U.S. Labor Department’s March jobs report issued Friday morning came in about as expected, showing a non-farm payrolls rise of 236,000 jobs versus a gain of 311,000 in the February report. Still, Friday’s jobs numbers fall into the camp of the U.S. monetary policy hawks, who want to see further interest rate increases from the Federal Reserve.

The U.S. data point of the week will be Wednesday morning’s consumer price index report for March, which is expected to show an annual rise of 5.1%, compared to a rise of 6.0% in the February report.

The key outside markets today see the U.S. dollar index firmer. Nymex crude oil prices are near steady and trading around $80.75 a barrel. The benchmark 10-year U.S. Treasury note yield is presently fetching 3.383%.

Retail Investors and analysts remain bullish on gold, but the precious metal might need a rest

U.S. economic data due for release Monday includes the employment trends index and monthly wholesale trade.

Live 24 hours gold chart [Kitco Inc.]

Technically, the gold futures bulls have the solid overall near-term technical advantage. Prices are in an uptrend on the daily bar chart. Bulls’ next upside price objective is to produce a close in April futures above solid resistance at the record high of $2,078.80. Bears' next near-term downside price objective is pushing futures prices below solid technical support at last week’s low of $1,950.00. First resistance is seen at the overnight high of $2,006.60 and then at last Thursday’s high of $2,023.30. First support is seen at the overnight low of $1,992.00 and then at $1,979.00. Wyckoff's Market Rating: 8.0

Live 24 hours silver chart [ Kitco Inc. ]

The silver bulls have the solid overall near-term technical advantage. Prices are in a steep uptrend on the daily bar chart. Silver bulls' next upside price objective is closing May futures prices above solid technical resistance at $27.00. The next downside price objective for the bears is closing prices below solid support at $23.00. First resistance is seen at last week’s high of $25.295 and then at $25.50. Next support is seen at the overnight low of $24.775 and then at $24.50. Wyckoff's Market Rating: 8.0.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.